Shiner Exploration, LLC

West Miller Creek

General Description:
Balvenie is a 4 Way in the Middle Wilcox and Lower Wilcox in eastern Lavaca County, Texas. The 4 way is formed from the roll along a large down to the southeast fault. There are seven horizons that exhibit a 4way closure from 34 to 105 acres of closure; average of 66 acres. The average height of closure in the 4 way is 24 feet but can be as large as 39 feet. The Prospect is located in the Kolache/Pivo 3D which Shiner Exploration had reprocessed in December 2016. Test depth is 10,000 ft. The prospect is analogous to the Hamel and Sublime Fields which both produced from the Middle and Lower Wilcox near this prospect. The expected production is oil or high yield gas. Sublime produced at least 32 Bcf and more than 660,000 bbls from the Middle and Lower Wilcox. Hamel produced 3,000,000 bbls from the Middle and Lower Wilcox. Both of these fields are within the Pivo 3D.

Location:
About 3 miles north of the community of Sublime in Lavaca County, Texas

Objective:
4 Way in Middle and Lower Wilcox Sands from 8,000 to 9,600 ft; normal pressured.

Estimated Reserves and Initial Rates:
Offset wells IP at 1-2 MMcfd and around 50-180 bopd depending on whether the horizons contain oil or gas. There are at least 10 horizons on the seismic that will be tested in a trapping position on the structure. As stated previously, seven will be tested in the 4 way. We estimate the range on reserves could be from 110,000 BO to 850,000 BO. Realistically, we believe this well has a mid case number of 270,000 BO. If the well is successful, additional wells may need to be drilled for the higher reserve cases.

Terms:
Participant pays its share of land and seismic costs of $260,000 and "1/3 for 1/4” of the DHC.
     Land, Geology, and Seismic   $260,000
     DHC                                            $640,000
     Completion                               $434,000

NRI – 75%

Balvenie

Urquel

General Description:
West Miller Creek is a 146 acre Lower Middle Wilcox anomaly. It is 3D defined and appears to have a structural/stratigraphic trap. It is a direct offset and look alike to two other successful Middle Wilcox generated amplitude/AVO prospects. The Prospect is located in the reprocessed Kolache-Pivo 3D (Dec 2016). Test depth is 9,000 ft and it will test the Lower Middle Wilcox. The prospect has good far offset AVO attributes which are supported by well gathers and excellent offset production in Shatto and East Hamel GU wells that are located nearby. The Hamel GU is to the north on pic below and made 2.5 Bcf and 11,000 BC. The Haveman and Shatto are to the south and made a combined 2.4 Bcf and 39,000 BC.

Location:
About 5 miles southheast of the community of Weimar in Colorado County, Texas

Objective:
Middle Wilcox Sand 8,300’

Estimated Reserves and Initial Rates:
Mid-case reserves are 4.2 Bcf and 67,000 BC. The initial rate should be 2.7 MMcfd and 40 bcpd.

​Terms:
Participant pays its share of land and seismic costs of $200,000 and "1/3 for 1/4” of the DHC.
     Land, Geology, and Seismic   $200,000
     DHC                                            $700,000
     Completion                               $400,000

NRI - 75%

General Description:
Urquel is a 110+ acre Lower Middle Wilcox anomaly. It is 3D defined and appears to have a structural/stratigraphic trap. It is a direct offset and look alike to three other successful Middle Wilcox generated amplitude/AVO prospects. The Prospect is located in the reprocessed Kolache-Pivo 3D (Dec 2016). Test depth is 9,300 ft and it will test the Middle Wilcox and top of Lower Middle Wilcox. The prospect has good far offset AVO attributes which are supported by well gathers and excellent offset production in the Molson, Guiness and Fosters wells that are located nearby. There is also an interesting anomaly that will be tested at the top of the Middle Wilcox / base of Upper Wilcox in a filled channel that will be tested.

Location:
About 4 miles southhwest of the community of Vienna in Lavaca County, Texas

Objective:
Middle Wilcox Sand 8,800’

Estimated Reserves and Initial Rates:
Its mid case recoverable reserves are 2.9 Bcf and 38,000 BC. High side is slightly over 4 Bcf. The initial rate should be 2.7 MMcfd and 45 bcpd (similar to Molson and Foster offset IP’s). Fosters overproduced its volumetrics.

Terms:
Participant pays its share of land and seismic costs of $225,000 and "1/3 for 1/4” of the DHC.
     Land, Geology, and Seismic   $225,000
     DHC                                            $640,000
     Completion                               $350,000

NRI - 75%